The African Trade & Investment Development Insurance (ATIDI) has made a fresh call for member States to honour their obligations to the trade credit and political risk insurer to remove the high risk tag associated with the continent.
The failure by member States to honour obligations has left ATIDI vulnerable as its effectiveness as an insurer greatly relies on its ability to prevent claims and the rights granted to the institution by the participation agreement, according to CEO Manuel Moses.
“The preservation of our preferred creditor status is also crucial to maintain trust among our clients, private reinsurers and financial institutions, who expect us to fulfil our contractual obligations in preventing and recovering claims.
“Therefore, we seek the support of shareholders in addressing potential claims and ensuring reimbursement of paid claims within the stipulated 180-day period,” he said at the opening of ATIDI’s annual general meeting on Wednesday.
“We call all shareholders to continue to honour their obligations to ATIDI. It is through that that we retain our rating and retain the confidence of our partners, our clients and our reinsurers,” he said.
Asked by journalists Thursday whether ATIDI will “name and shame” those that are behind, Moses said the pan African institution is in talks with concerned member states.
“We talk to them on a one-to-one basis and say we understand you are going through a difficult time but please remember that as soon as you can, meet your obligations so that collectively we show the world that Africa means business and does not want to be labelled as high risk.”
“There are [those that have not met their obligations] there. We understand why and we are in engagement with them.”
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In its financial results for 2023, ATIDI posted a stellar performance the best in the organisation's history, underlining its stature as one of Africa’s highest-rated financial institutions, according to Moses.
Net profit more than trebled to US$69,1 million last year from US$22,7 million in 2022.
Insurance revenue was up 14% to US$155,7 million while gross exposure grew to US$9,6 billion from US$8,1 billion in 2022.
“The message is that in all metrics we are doing well despite the challenges on the continent,” Moses said.
He said ATIDI has continued to play a pivotal role in facilitating trade and investment in the continent by mitigating risks and fostering sustainable development.
Moses said ATIDI will deploy its instruments to drive intra-African trade under the African Continental Free Trade Area (AfCFTA).
“The African Continental Free Trade Area is coming to fruition and we hope to deploy our instruments to facilitate intra-African trade, in addition to promoting trade between Africa and the rest of the world. We believe with these instruments Africa will take its fair share in global trade,” he said.
The AfCFTA, which came into force in January 2021, is touted as Africa's Marshall Plan, in reference to an American initiative passed in 1948 that provided over US$15 billion to help rebuild western Europe after it was destroyed by World War II.
The AfCFTA is tipped to lift 100 millions Africans out of poverty and contribute US$450 billion to Africa’s gross domestic product by 2035, according to a report by the World Bank.
Moses said ATIDI continues to play a pivotal role in facilitating trade and investment in the continent by mitigating risks and fostering sustainable development. This has enabled the institution to navigate through uncertain times and emerge stronger and more resilient than ever before, he said.
“However, our journey does not end here. As we stand at the cusp of a new era, we must remain vigilant and adaptable in the face of evolving global challenges. Climate change, geopolitical shifts, Africa’s debt burden, political and social volatility, among others, underscore the critical importance of our work and the need for innovative solutions to address complex and interconnected issues,” Moses said.
Headquartered in Nairobi, Kenya, ATIDI provides trade credit and political risk insurance to companies, investors and lenders interested in doing business in Africa.
